Cost Flow Relationships The following information is availab

Cost Flow Relationships The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils Sales Gross profit Cost of goods manufactured Indirect labor Factory depreciation Materials purchased Total manufacturing costs for the period Materials inventory, ending $541,280 315,570 270,640 117,460 17,860 166,710 311,240 22,190 ) Using the above information, determine the following missing amounts a. Cost of goods sold b. Finished goods inventory at the end of the month c. Direct materials cost d. Direct labor cost e. Work in process inventory at the end of the month

Solution

(a) COST OF GOODS SOLD : sales - gross profit
= 541,280 - 315,570
=$225,710

(b) FINISHED GOODS INVENTORY : cost of goods manufactured - cost of goods sold
= 270,640 - 225,710
= $44,930

(c) DIRECT MATERIAL COST : material purchased - material inventory
= 166,710 - 22,190
= $144,520

(d) DIRECT LABOUR COST : Total manufacturing cost - derect material cost - indirect labour - factory depreciation
= 311,240 - 144,520 - 117,460 - 17,860
= $31,400

(e) WORK IN PROCESS INVENTORY : Total maufacturing cost - cost of goods manufactured
= 311,240 - 270,640
= $40,600